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HIGHLIGHTS
6
Limitations on Participation in Factory
Training Programs – 463(1)(d)
•
Prohibits franchisors from requiring dealership
employees to participate in training programs unless
the programs are limited to information needed to sell
or service vehicles.
•
Prohibits franchisors from unreasonably requiring
attendance of a dealer-principal in training sessions.
•
Requires franchisors to employ reasonable efforts to
limit or reimburse dealer costs for factory training
programs.
Non-factory Service Contracts – 463(1)(e)
•
Prohibits franchisors from requiring dealers to sell only
extended service contracts offered by the franchisor.
Limits on Changes to, or Control of a
Facility – 463(2)(c)
•
Prohibits franchisors from unreasonably requiring
facility upgrades.
•
Requires franchisors to submit to a dealer more detailed
projections to support any request for renovations.
•
Prohibits a franchisor from conditioning the renewal
or extension of a franchise agreement on the dealer
constructing a new facility or renovating an existing
facility, unless the franchisor provides at least 180 days
notice and can demonstrate that the updated facility is
needed and reasonable in light of economic conditions
in the automotive industry.
•
Requires franchisors requesting new facilities to agree,
in writing, to supply a dealer with additional vehicles
needed to support the increased overhead as a result of
any required construction or renovation.
•
Prohibits franchisors from forcing a dealer to perform
repeated facility upgrades or rejecting construction
materials or services that are chosen by dealers that are
substantially similar to those required by franchisors.
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